The shirt came up during discussion with a caller in the context of tolerance of offensive speech, specifically in regards to the widely-reported racist comments by the Los Angeles Clippers basketball team owner Donald Sterling. Here's the relevant part, taken from the official EIB transcript (emphasis mine):
"CALLER: Say, you know the left really has no credibility when it comes to this issue of offensive speech. You know, I was parked at a stoplight a while back beside a cop car. A teenager walked across the street with a T-shirt that says, "Jesus is a," it's a four-letter C-word talking about a woman's body part. I asked the cop, "Can you do something about that?" The cop says, "No, it's protected speech." Well, that's protected because the Supreme Court ruled that offensive speech needed to be protected. And when Larry Flynt said all those lousy things about that pastor and the left and the media celebrated that. So they either gotta complain about all of it or none of it. No credibility."
You can listen to the exchange in the video below at about the 24:22 mark: